{"operation":"document","citation":"CPF 520160019M","title":"NORTH SLOPE BOROUGH ENERGY MANAGEMENT — Notice of Amendment","source_type":"enforcement","agency":"Pipeline and Hazardous Materials Safety Administration","status":"historical","official":true,"published_on":"2016-10-06","effective_on":null,"summary":"CLOSED notice of amendment citing 192.605(b)(1), 192.615(a)(10), 192.615(a)(3)(ii), 192.615(a)(4), 192.617.","machine_formats":{"json":"https://regulus.evalyn.ai/document/phmsa-enforcement-520160019m.json","markdown":"https://regulus.evalyn.ai/document/phmsa-enforcement-520160019m.md"},"app_url":"https://regulus.evalyn.ai/document/phmsa-enforcement-520160019m","source_url":"https://primis.phmsa.dot.gov/enforcement-data/case/520160019M","body":"Notice of Amendment involving NORTH SLOPE BOROUGH ENERGY MANAGEMENT. PHMSA's enforcement data identifies the cited regulations as 192.605(b)(1),  192.615(a)(10),  192.615(a)(3)(ii),  192.615(a)(4),  192.617. The case was opened on 2016-10-06 and is reported as closed as of 2019-01-15. Open the official case record for notices, responses, orders, and the latest status.\n\nOfficial case documents:\n\n520160019M_Closure Letter_01152019.pdf: https://primis.phmsa.dot.gov/enforcement-documents/520160019M/520160019M_Closure%20Letter_01152019.pdf\n\n520160019M_Closure Letter_01152019_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/520160019M/520160019M_Closure%20Letter_01152019_text.pdf\n\n520160019M_Notice of Amendment_10062016.pdf: https://primis.phmsa.dot.gov/enforcement-documents/520160019M/520160019M_Notice%20of%20Amendment_10062016.pdf\n\n520160019M_Notice of Amendment_10062016_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/520160019M/520160019M_Notice%20of%20Amendment_10062016_text.pdf\n\n520160019M_Operator Response to Notice_11092018.pdf: https://primis.phmsa.dot.gov/enforcement-documents/520160019M/520160019M_Operator%20Response%20to%20Notice_11092018.pdf\n\n520160019M_Order Directing Amendment_10302018.pdf: https://primis.phmsa.dot.gov/enforcement-documents/520160019M/520160019M_Order%20Directing%20Amendment_10302018.pdf\n\n520160019M_Order Directing Amendment_10302018_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/520160019M/520160019M_Order%20Directing%20Amendment_10302018_text.pdf\n\n520160019M_Closure Letter_01152019_text.pdf\n\nCERTIFIED MAIL - RETURN RECEIPT REQUESTED\nJanuary 15, 2019\nThe Honorable Harry K. Brower, Jr., Mayor\nMayor of the North Slope Borough\nNorth Slope Borough Energy Management\nNuiqsut Utilities Cooperative\nP.O. Box 69\nBarrow, Alaska 99723\nCPF 5-2016-0019M\nClosure Letter\nDear Mayor Brower:\nOn October 30, 2018, the Pipeline and Hazardous Materials Safety Administration (PHMSA)\nissued to North Slope Borough Energy Management an Order Directing Amendment in the\nabove-referenced case. This Order included a requirement to amend your procedures. Based on\nour review of the documentation you provided, it has been determined that you have complied\nwith the terms of this Order.\nAccordingly, this case is now closed and no further action is contemplated with respect to the\nmatters involved in this case. Thank you for your cooperation in this matter.\nSincerely,\nChris Hoidal\nActing Director, Western Region\nPipeline and Hazardous Materials Safety Administration\ncc: PHP-60 Compliance Registry\nPHP-500 Jake Gano (#153508)\nMr. Erik Danner, Division Manager Fuel and Natural Gas\n\n520160019M_Order Directing Amendment_10302018_text.pdf\n\nOctober 30, 2018\nThe Honorable Harry K. Brower, Jr., Mayor\nNorth Slope Borough\nP. O. Box 69\nBarrow, Alaska 99723\nRe: CPF No. 5-2016-0019M\nDear Mayor Brower:\nEnclosed please find the Order Directing Amendment issued in the above-referenced case. It\nmakes findings of inadequate procedures and requires that North Slope Borough Energy\nManagement, a division of the North Slope Borough, amend certain operating and maintenance\nprocedures for its gas distribution system and submit such procedures to PHMSA within 30 days\nof receipt of this Order. When the amendment of procedures has been completed, as determined\nby the Director, Western Region, this enforcement action will be closed. Service of the Order by\ncertified mail is effective upon the date of mailing, as provided under 49 C.F.R. § 190.5.\nThank you for your cooperation in this matter.\nSincerely,\nAlan K. Mayberry\nAssociate Administrator\nfor Pipeline Safety\nEnclosure\ncc: Ms. Kim West, Director, Western Region, Office of Pipeline Safety, PHMSA\nMr. James Wolgemouth, Fuel Division, Department of Public Works, North Slope\nBorough Energy Management, P. O. Box 69, Barrow, Alaska 99723\nCERTIFIED MAIL - RETURN RECEIPT REQUESTED\n\n\n\nU.S. DEPARTMENT OF TRANSPORTATION\nPIPELINE AND HAZARDOUS MATERIALS SAFETY ADMINISTRATION\nOFFICE OF PIPELINE SAFETY\nWASHINGTON, D.C. 20590\n________________________________________________\nIn the Matter of )\nNorth Slope Borough Energy Management, a division )\nof North Slope Borough, Alaska, ) CPF No. 5-2016-0019M\na municipal corporation, )\n)\n)\n)\nRespondent. )\n________________________________________________)\nORDER DIRECTING AMENDMENT\nFrom July 11-15, 2016, pursuant to 49 U.S.C. § 60117, representatives of the Pipeline and\nHazardous Materials Safety Administration (PHMSA), Office of Pipeline Safety (OPS),\nconducted an inspection of the procedures of Nuiqsut Utilities Cooperative, which is part of\nNorth Slope Borough Energy Management (North Slope or Respondent) in Nuiqsut, Alaska.\nNorth Slope, a division of the Department of Public Works, North Slope Borough, operates and\nmaintains the power plants and distribution of electric energy in seven villages on the North\nSlope of Alaska, including a natural gas distribution pipeline system.1 The Nuiqsut Utilities\nCooperative operates the local natural gas distribution system comprised of almost 4 miles of\nmains and 163 miles of plastic distribution piping.2\nAs a result of the inspection, the Director, Western Region, OPS (Director), issued to\nRespondent, by letter dated October 6, 2016, a Notice of Amendment (Notice). In accordance\nwith 49 C.F.R. § 190.206, the Notice proposed finding that certain of North Slope’s plans and\nprocedures were inadequate to assure safe operation of its pipeline facilities and proposed that\nRespondent amend its procedures for operations, maintenance, and emergencies.\nRespondent failed to respond within 30 days of receipt of service of the Notice.3 Under 49\nC.F.R. § 190.208(d), such failure to respond constitutes a waiver of North Slope’s right to\ncontest the allegations in the Notice and authorizes the Associate Administrator, without further\n1 See http://www.north-slope.org/departments/public-works/utilities-power-lights. Current as of July 7, 2017.\n2 See North Slope Borough Energy Management 2016 PHMSA Annual Report:\nhttps://primis.phmsa.dot.gov/comm/reports/operator/OperatorReport opid 31142.html?nocache=7767.\n3 The Borough accepted service on October 14, 2016. See U.S. Postal Service Certified Mail Receipt (on file with\nPHMSA).\n\n\n\nCPF No. 5-2016-0019M\nPage 2\nnotice, to find facts as alleged in the Notice and issue this Order Directing Amendment (Order)\nunder § 190.206. In this instance, PHMSA also contacted Respondent by telephone to discuss\nthe issues in the Notice with North Slope.4 Considering such circumstances and the safety\nconcerns raised in the Notice, I find it reasonable and appropriate to enter this Final Order\nwithout further proceedings.\nFINDINGS OF INADEQUATE PROCEDURES\nThe Notice alleged certain inadequacies in Respondent’s Gas Operating and Maintenance\n(O&M) Manual and the Nuiqsut Gas Distribution System Pipeline-Specific Operating Manual\n(PSOM), and proposed requiring North Slope to amend its procedures to ensure safe operations\nas follows:\nItem 1: The Notice alleged that Respondent’s procedures were inadequate with regard to\n49 C.F.R. § 192.605(b)(1), which states:\n§ 192.605 Procedural manual for operations, maintenance, and\nemergencies.\n(a) …\n(b) Maintenance and normal operations. The manual required by\nparagraph (a) of this section must include procedures for the following, if\napplicable, to provide safety during maintenance and operations.\n(1) Operating, maintaining, and repairing the pipeline in accordance with\neach of the requirements of this subpart and subpart M of this part.\nThe Notice alleged that Respondent’s procedures were inadequate with regard to 49 C.F.R.\n§ 192.605(b)(1) because North Slope’s O&M Manual and the PSOM did not include adequate\nprocedures for conducting periodic odorant sampling required by § 192.625(f). Specifically,\nthe PSOM indicated that \"sniff testing\" was performed but did not specify how or where the\ntests were to be conducted.\nRespondent did not contest this allegation. Accordingly, based upon a review of all the\nevidence, I find that Respondent’s procedures were inadequate as alleged in the Notice.\nRespondent is hereby ordered to amend its O&M manual and PSOM to specify how the periodic\nsampling required by § 192.625(f) will be performed.\nItem 2: The Notice alleged that Respondent’s procedures were inadequate with regard to\n49 C.F.R. § 192.615(a)(3)(ii), which states:\n§ 192.615 Emergency plans.\n(a) Each operator shall establish written procedures to minimize the hazard\n4 In its Region Recommendation, OPS indicated that an inspector from the OPS Alaska Office spoke with Mr. James\nWolgemouth in the Borough’s Department of Public Works on two occasions in January/ February 2017 and then\nleft several follow-up voice messages. According to PHMSA records, no one from the North Slope Borough\nresponded to the calls or filed any written response to the Notice.\n\n\n\nCPF No. 5-2016-0019M\nPage 3\nresulting from a gas pipeline emergency. At a minimum, the procedures must\nprovide for the following:\n(1) …\n(3) Prompt and effective response to a notice of each type of emergency,\nincluding the following:\n(i) …\n(ii) Fire located near or directly involving a pipeline facility. . . .\nThe Notice alleged that Respondent’s procedures were inadequate with regard to 49 C.F.R.\n§ 192.615(a)(3)(ii) because its Emergency Plan (pages 183-191 of the O&M Manual) did not\ncontain provisions to address a fire on the pipeline facility. Specifically, the Notice alleged that\nNSB's Emergency Plan did not include plans to address a fire at the Pressure Reducing Valve\n(PRV) station, where high-pressure gas is present and flammable odorant is stored nearby.\nRespondent did not contest this allegation. Accordingly, based upon a review of all the\nevidence, I find that Respondent’s procedures were inadequate as alleged in the Notice. North\nSlope is hereby ordered to amend its O&M Manual and PSOM to include plans to address a fire\nat the PRV station, where high-pressure gas is present and flammable odorant is stored nearby.\nItem 3: The Notice alleged that Respondent’s procedures were inadequate with regard to\n49 C.F.R. § 192.615(a)(4), which states:\n§ 192.615 Emergency plans.\n(a) Each operator shall establish written procedures to minimize the hazard\nresulting from a gas pipeline emergency. At a minimum, the procedures must\nprovide for the following:\n(1) …\n(4) The availability of personnel, equipment, tools, and materials, as needed\nat the scene of an emergency.\nThe Notice alleged that Respondent’s procedures were inadequate with regard to 49 C.F.R.\n§ 192.615(a)(4) because they failed to reflect the emergency equipment that was available to\nNorth Slope personnel during a gas pipeline emergency. Specifically, the Notice alleged that\nNorth Slope's Emergency Plan procedures specified the use of two-way radios; however,\nresponders in Nuiqsut were not equipped with two-way radios.\nRespondent did not contest this allegation. Accordingly, based upon a review of all of the\nevidence, I find that Respondent’s procedures were inadequate as alleged in the Notice. North\nSlope is hereby ordered to amend its Emergency Plan to reflect which equipment and tools are\navailable to emergency response personnel in Nuiqsut to ensure that equipment is sufficient for a\n“prompt and effective response to a notice of each type of emergency,” as required under\n§ 192.615(a)(3).\nItem 4: The Notice alleged that Respondent’s procedures were inadequate with regard to\n49 C.F.R. § 192.615(a)(10), which states:\n§ 192.615 Emergency plans.\n\n\n\nCPF No. 5-2016-0019M\nPage 4\n(a) Each operator shall establish written procedures to minimize the hazard\nresulting from a gas pipeline emergency. At a minimum, the procedures must\nprovide for the following:\n(1) ...\n(10) Beginning action under §192.617, if applicable, as soon after the end\nof the emergency as possible.\nThe Notice alleged that Respondent’s procedures were inadequate with regard to 49 C.F.R.\n§ 192.615(a)(10) because they failed to include provisions to initiate an investigation following\nan emergency response. Specifically, the Notice alleged that North Slope’s Emergency Plan did\nnot include procedures to begin an investigation of a failure as soon after the end of the\nemergency as possible.\nRespondent did not contest this allegation. Accordingly, based upon a review of all the\nevidence, I find that Respondent’s procedures were inadequate as alleged in the Notice. North\nSlope is hereby ordered to amend its Emergency Plan to provide specific procedures for\nbeginning an investigation of a failure as soon after the end of the emergency as possible.\nItem 5: The Notice alleged that Respondent’s procedures were inadequate with regard to\n49 C.F.R. § 192.617, which states:\n§ 192.617 Investigation of failures.\nEach operator shall establish procedures for analyzing accidents and\nfailures, including the selection of samples of the failed facility or equipment\nfor laboratory examination, where appropriate, for the purpose of determining\nthe causes of the failure and minimizing the possibility of a recurrence.\nThe Notice alleged that Respondent’s procedures were inadequate with regard to 49 C.F.R.\n§ 192.617 because they failed to include procedures for analyzing accidents and failures,\nincluding the selection of samples of the failed facility or equipment for laboratory examination,\nwhere appropriate, to determine the causes of the failure and minimizing the possibility of a\nrecurrence.\nRespondent did not contest this allegation. Accordingly, based upon a review of all the\nevidence, I find that Respondent’s procedures were inadequate as alleged in the Notice. North\nSlope is hereby ordered to amend its procedures to include provisions to investigate and analyze\naccidents and failures.\nPursuant to 49 U.S.C. § 60108(a) and 49 C.F.R. § 190.206, North Slope is ordered to revise its\nprocedures as specified in Items 1 through 5, above. North Slope must submit the amended\nprocedures to the Director, Western Region, within 30 days following receipt of this Order.\nThe Director may grant an extension of time to comply with any of the required items upon a\nwritten request timely submitted by the Respondent and demonstrating\ngood cause for an extension.\nFailure to comply with this Order may result in the administrative assessment of civil penalties\n\n\n\nCPF No. 5-2016-0019M\nPage 5\nnot to exceed $200,000, as adjusted for inflation (49 C.F.R. § 190.223), for each violation for\neach day the violation continues or in referral to the Attorney General for appropriate relief in a\ndistrict court of the United States.\nThe terms and conditions of this Order Directing Amendment are effective upon service in\naccordance with 49 C.F.R. § 190.5.\nOctober 30, 2018\n___________________________________ __________________________\nAlan K. Mayberry Date Issued\nAssociate Administrator\nfor Pipeline Safety\n\n520160019M_Notice of Amendment_10062016_text.pdf\n\nNOTICE OF AMENDMENT\nCERTIFIED MAIL - RETURN RECEIPT REQUESTED\nOctober 6, 2016\nThe Honorable Harry K. Brower, Jr.\nMayor of the North Slope Borough\nNorth Slope Borough Energy Management\nNuiqsut Utilities Cooperative\nP.O. Box 69\nBarrow, Alaska 99723\nCPF 5-2016-0019M\nDear Mayor Brower:\nOn July 11 through 15, 2016, representatives of the Pipeline and Hazardous Materials Safety\nAdministration (PHMSA), pursuant to Chapter 601 of 49 United States Code, inspected the\nNuiqsut Utility Cooperative’s procedures for Operations and Maintenance and Emergency Plans\nin Nuiqsut, Alaska.\nOn the basis of the inspection, PHMSA has identified the apparent inadequacies found in NSB’s\nplans or procedures, as described below:\n1. §192.605 Procedural manual for operations, maintenance, and emergencies.\n…(b) Maintenance and normal operations. The manual required by paragraph (a) of\nthis section must include procedures for the following, if applicable, to provide safety\nduring maintenance and operations.\n(1) Operating, maintaining, and repairing the pipeline in accordance with each of the\nrequirements of this subpart and subpart M of this part.\nThe North Slope Borough’s (NSB) Gas Operations and Maintenance (O&M) Manual and the\nNuiqsut Gas Distribution System Pipeline-Specific Operating Manual (PSOM) did not include\nadequate procedures for conducting periodic odorant sampling required by §192.625(f). The\nPSOM indicates that “sniff testing” is done but does not specify how or where the tests are to be\nconducted. NSB must amend their procedures to specify how the periodic odorant sampling will\n\n\n\nbe done.\n2. §192.615 Emergency Plans\n(a) Each operator shall establish written procedures to minimize the hazard\nresulting from a gas pipeline emergency. At a minimum, the procedures must\nprovide for the following:\n…(3) Prompt and effective response to a notice of each type of emergency, including\nthe following:\n…(ii) Fire located near or directly involving a pipeline facility.\nThe NSB’s Emergency Plan (pages 183-191 of the O&M Manual) did not contain provisions to\naddress a fire on the pipeline facility. NSB must revise their PSOM to include plans to address a\nfire at the Pressure Reducing Valve (PRV) station, where high-pressure gas is present and\nflammable odorant is stored nearby.\n3. §192.615 Emergency Plans\n(a) Each operator shall establish written procedures to minimize the hazard\nresulting from a gas pipeline emergency. At a minimum, the procedures must\nprovide for the following:\n…(4) The availability of personnel, equipment, tools, and materials, as needed at the\nscene of an emergency.\nThe NSB’s Emergency Plan procedures specify the use of two-way radios; however, responders\nin Nuiqsut are not equipped with two-way radios. NSB must review and amend their Emergency\nPlan to reflect equipment and tools which available to emergency response personnel in Nuiqsut.\nThe equipment specified in the Emergency Plan must be sufficient for a “prompt and effective\nresponse to a notice of each type of emergency,” per §192.615(a)(3).\n4. §192.615 Emergency Plans\n(a) Each operator shall establish written procedures to minimize the hazard\nresulting from a gas pipeline emergency. At a minimum, the procedures must\nprovide for the following:\n…(10) Beginning action under §192.617, if applicable, as soon after the end of the\nemergency as possible.\nThe NSB’s Emergency Plan procedures did not include provisions to initiate an investigation\nfollowing the emergency response. NSB must amend their Emergency Plan to specific\nprocedures for beginning investigation of failures following an emergency.\n5. §192.617 Investigation of failures.\nEach operator shall establish procedures for analyzing accidents and failures,\nincluding the selection of samples of the failed facility or equipment for laboratory\nexamination, where appropriate, for the purpose of determining the causes of the\nfailure and minimizing the possibility of a recurrence.\n\n\n\nThe NSB did not establish written procedures to investigate and analyze failures. establish procedures to do so.\nNSB must\nResponse to this Notice\nThis Notice is provided pursuant to 49 U.S.C. § 60108(a) and 49 C.F.R. § 190.206. Enclosed as\npart of this Notice is a document entitled Response Options for Pipeline Operators in Compliance\nProceedings. Please refer to this document and note the response options. Be advised that all\nmaterial you submit in response to this enforcement action is subject to being made publicly\navailable. If you believe that any portion of your responsive material qualifies for confidential\ntreatment under 5 U.S.C. 552(b), along with the complete original document you must provide a\nsecond copy of the document with the portions you believe qualify for confidential treatment\nredacted and an explanation of why you believe the redacted information qualifies for confidential\ntreatment under 5 U.S.C. 552(b).\nFollowing the receipt of this Notice, you have 30 days to submit written comments, revised\nprocedures, or a request for a hearing under §190.211. If you do not respond within 30 days of\nreceipt of this Notice, this constitutes a waiver of your right to contest the allegations in this\nNotice and authorizes the Associate Administrator for Pipeline Safety to find facts as alleged in\nthis Notice without further notice to you and to issue an Order Directing Amendment. If your\nplans or procedures are found inadequate as alleged in this Notice, you may be ordered to amend\nyour plans or procedures to correct the inadequacies (49 C.F.R. § 190.206). If you are not\ncontesting this Notice, we propose that you submit your amended procedures to my office within\n90 days of receipt of this Notice. This period may be extended by written request for good cause.\nOnce the inadequacies identified herein have been addressed in your amended procedures, this\nenforcement action will be closed.\nIt is requested (not mandated) that NSB maintain documentation of the safety improvement costs\nassociated with fulfilling this Notice of Amendment (preparation/revision of plans, procedures)\nand submit the total to Chris Hoidal, Director, Western Region, Pipeline and Hazardous Materials\nSafety Administration. In correspondence concerning this matter, please refer to CPF 5-2016-\n0019M and, for each document you submit, please provide a copy in electronic format whenever\npossible.\nSincerely,\nChris Hoidal\nDirector, Western Region\nPipeline and Hazardous Materials Safety Administration\ncc: PHP-60 Compliance Registry\nPHP-500 J. Gano (#153508)\nPHP-500 D. Hassell (#153508)\nEnclosure: Response Options for Pipeline Operators in Compliance Proceedings","truncated":false,"body_characters":21523}